Croatia's INA cuts refinery throughputs

Embattled Croatian state oil company Industrija Nafte d.d. Zagreb (INA) says it is cutting back its refined products output as a result of its inability to purchase adequate crude oil supplies. INA's financial situation, and thus its ability to purchase crude oil, is grave, according to official Mario Dragun, but he declined to say how big the cutbacks will be.


MOSCOW�Embattled Croatian state oil company Industrija Nafte d.d. Zagreb (INA) says it is cutting back its refined products output as a result of its inability to purchase adequate crude oil supplies.

INA's financial situation, and thus its ability to purchase crude oil, is grave, according to official Mario Dragun, but he declined to say how big the cutbacks will be.

INA is struggling against higher crude oil prices on the one hand and regulated product prices on the other. The firm's downstream operations are profitable if the price of Brent crude is no more than $22/bbl and the US dollar is fetching no more than 8.0 kuna.

Brent has risen above $28, and the dollar is worth 8.6 kuna.

To assist INA, the government has allowed the firm to start raising $206.4 million from foreign banks to purchase crude oil and fuel additives. Meanwhile, a recent government decision to raise the excise duty on oil products will hike the price of gasoline by 29%, but none of the increase will go to INA.

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